1. Tax on value addition: The impact of tax on the wholesaler or retailer would be limited to the value addition. The tax paid at earlier stages (except CGST & SGST of other States) would be available as set off for payment of GST on supplies. Therefore traders would prefer to buy or receive supplies with invoice pre and post GST.

2. Reduce cascading: Cost of products and services would reduce normally due to the cascading effect of tax being reduced. Service tax credits would be available and going forward even the capital goods used for storing, handling etc.

3. SGST levy: CGST and SGST would be levied on the local supply of goods within State. IGST (comprised of CGST and SGST) would be levied on interstate supply of goods.

4. No subsequent sale or sale in transit under the CST Act against Forms E-1/2: This exemption as per section 6(2) of the CST Act is not continued under GST levy. GST would be charged on both transactions.

5. Export supplies Under Form H/ Supplies to SEZ under form I: Not available.

Stock transfers: Presently, stock transfer is done without charging CST against Form F. Under GST law, stock transfers from one State to other would be liable to GST. Stock transfers to branches/consignment agents within the State: Under GST, these transfers would not be taxed as registration number of transferor and transferee is same. Where the division! branch or agent has a different registration CGST&SGST would be charged.

6. Small Traders: They would be eligible for the composition scheme up to Rs 50 lakhs provided their aggregate turnover in the preceding financial year did not exceed Rs. 50 lakh. After that normal rate. The essential conditions to be complied for availing the benefit of aforesaid Composition Scheme are as under

(i) No credit to dealers’ customer;
(ii) No inter-state supply of goods.